nvp for best and worst case please

Family Security is considering introducing tiny GPS trackers that can be inserted in the sole of a child's shoe, which would then allow for the tracking of that child if he or she was ever lost or abducted. The estimates, that might be off by 9 percent (either above or below), associated with this new product are shown here:

unit price: $128

variable costs: $72

fixed costs: $255,000 per year

expected sales: $10,700 per year

Since this is a new product line, you are not confident in your estimates and would like to know how well you will fare if your estimates on the items listed above are 9 percent higher or

9 percent lower than expected. Assume that this new product line will require an initial outlay of $1.13 million, with no working capital investment, and will last for 10 years, being depreciated down to zero using straight-line depreciation. In addition, the firm's required rate of return or cost of capital is 9.6 percent, and the firm's marginal tax rate is 34 percent. Calculate the project's NPV under the "best-case scenario" (that is, use the high estimates

longunit price 9 percent above expected, variable costs 9 percent less than expected, fixed costs 9 percent less than expected, and expected sales 9 percent more than expected). Calculate the project's NPV under the "worst-case scenario."

Related to Checkpoint 13.3) (Scenario analysis) Family Secunty is considering introducing tny GPS trackers that can be inserted in the sole of a child's shoe, which would then allow for the tracking of that child if he or she was ever lost or abducted The states, that might be off by 9 percent (either above or below), associated with this new product are shown here. Since this is a new product line, you are not confident in your estimates and would like to know how well you will fare if your estimates on the tems listed above are percent higher or 8 percent lower than expected. Assume that this new product one will require an inital outay of $1.13 million, with no working capital investment, and will last for 10 years, being depreciated down to zero using straight-ne depreciation. In addition, the firm's required rate of retum or cost of capital is 9.6 percent, and the fir's marginal tas cate is 34 percent Calculate the projects NPV under the best-case scenard" (that is use the high estimates-unit price 9 percent above expected, vanable costs 9 percent less than expected, fixed costs 9 percent less than expected, and expected sales 9 percent more than expected) Calculate the projects NPV under the word-case scena Data table The NPV for the best-case scenario will be S (Round to the nearest dollar) Unit price $120 $72 Variable costs: Fixed costs Expected sales: $255.000 per year 10,700 per year (Cles on the icon in order to copy its contenes into a ap) Print Done